East African Breweries Limited Managing Director Jane Karuku. PHOTO | JEFF ANGOTE | NATION MEDIA GROUP The brewer attributed the 23 percent growth to investment behind brands and innovation in the route to market in response to consumer behaviour shifts.
EABL has also reported a 51 percent increase in physical asset acquisition in support of future growth, amidst uncertainty of the future market dynamics in the region.
EABL registered a higher sales improvement in Uganda, which had more stringent Covid-19 restrictions in that period than in Tanzania.
East African Breweries Limited (EABL) has posted $76.6 million in its half profit to December last year from $33.11 million booked in a similar period in 2020, driven by revenue growth in Kenya, following the lifting of the curfew and re-opening of bars in October last year.
EABL said that its net sales in Kenya improved by 27 percent, beating Uganda and Tanzania, in which it recorded 18 percent and 15 percent sales rise respectively.
This comes after Kenya lifted the dusk to dawn curfew in October last year, after being in effect since March 2020, marking the resumption to full operating hours by bars, restaurants, and eateries.
“The Group’s profit after tax grew to $76.6 million, primarily driven by the higher net sales, margin expansion, robust cost management and the re-opening of bars in Kenya in the second quarter,” EABL said in the statement.
EABL Group chief executive Jane Karuku said the re-opening of bars in the second quarter boosted its total sales, which jumped to $479.72 million, or 23 percent, for the period from $384.4 million a year earlier.
“EABL’s performance for the half-year ended 31 December 2021 demonstrates a strong recovery from the impact of the Covid-19 pandemic that affected the last two financial years,” said the brewer.
The brewer attributed the 23 percent growth to investment behind brands and innovation in the route to market in response to consumer behaviour shifts.
“Additionally, the continued investment in capacity of $54.17 million enabled EABL to rapidly respond to the increased consumer demand.Following the 131 percent increase in profit, the company has set a temporary dividend payout of $0.033 per share. EABL froze payouts in the first half of the 2021 financial year, citing uncertainty due to Covid-19 restrictions, after registering a one percent drop in profits.EABL has also reported a 51 percent increase in physical asset acquisition in support of future growth, amidst uncertainty of the future […]